Transaction cards, such as credit cards, are used to conduct transactions such as payment transactions. A card can be presented in person in order to conduct a transaction (a “card present” transaction). The card can contain an account number. The account number could also be recited over the phone for mail order purchases (a “card not present” transaction). Now, with the rise of cellular telephones, the Internet, and various other communication channels and technologies, account numbers can be used in a number of different ways.
The ubiquity of card transactions and the ease with which they can be made using technology (including in card not present transactions) has led to increased opportunities for fraud. Once fraud has been discovered, the account in question may be suspended and the consumer is issued a new account. The technology does not exist, however, for issuing a replacement account and the means enabling the user to use the replacement account immediately. Instead, the issuance process may take some time, and during this period the consumer cannot use the account over any channel. For example, if a consumer's credit card number is stolen during a card not present transaction, for instance through the use of keylogging software illegally installed on the consumer's computer terminal, the consumer can use the credit card number neither in future card present nor card not present transactions.
Some cards have further identifying features, such as “verification values” or “card security codes.” Verification values are 3- or 4-digit numbers that are printed on the face of a credit card. A verification value is often used in “card not present” transactions. If the verification value and the consumer's account number is stolen, then a thief may use this information to conduct purchases in card not present transactions, for instance transactions made through the Internet or by telephone.
Better methods to secure against fraud are desirable. Embodiments of the invention address these and other problems, individually and collectively.